The wealth management unit of Swiss bank UBG AG has been strengthened by a few new hires. The company hired a father and son duo from Morgan Stanley to boost its team. Brokers Douglas Clayburn and Evan Clayburn have been working in the Walnut Creek office of the New York headquartered bank.
The duo has been managing over $240 million of assets at Morgan Stanley and generated $1.6 million in revenues from high net-worth individuals during the past year. Mr. Clayburn has been in the industry for about 32 years. The father and son team will remain based in Walnut Creek, California.
The administrator of the Clayburns, Stacey Kaleikini, will also be joining them at their new playground at UBS.
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Morgan Stanley Compensation Cuts
Last year, Morgan Stanley took the initiative to cut compensation of some of its wealth managers with initial reports circulating about a marginal reduction. The cost cutting decisions made last summer were supposed to reduce the payouts of brokers who are generating less revenues.
Considering the scarcity of quality hires in this sector of banking, the reduction of pay might have already started backfiring for Morgan Stanley, with mid-grade performers still difficult to find and competition across the spectrum getting ever higher.
The businesses of banks that let their top employees go are also suffering as the clients brought in frequently leave with them.